Monday, November 12, 2012

A Couple of Challenges to the "Patriotic Millionaires"

There's a group calling themselves the Patriotic Millionaires, who are calling for Congress to pass legislation that will put into effect the Buffett Rule.

BR is a tax plan proposed by President Barack Obama in 2011. The tax plan would apply a minimum tax rate of 30 percent on individuals making more than a million dollars a year.

Note, this would only apply to newly earned income. Thus, this provides a distinct advantage to those who are already multi-millionaires, who have already accumulated wealth in years when tax rates were lower, as opposed to others just trying to make it into the multi-millionaire category, who will be stifled by the new tax.

Thus, will the "Patriotic Millionaires" who have already made millions over the years be willing to give 30% of their wealth up as taxes to, so to speak, even the playing field? I put this challenge to them.

Second, since this tax revenue is to be turned over to government without a discussion of the bureaucratic methods of government agencies and the power centers created by government, will these "Patriotic Millionaires" allow me to exam their businesses, finances and portfolios and call in government agencies, whenever I see fit, to enforce various agency regulations that they might not be following, since they are so keen to support these agencies by calling for greater taxes on others? I put this challenge to them.

Here's the list of the "Patriotic Millionaires", let's see how many will agree to accept these two challenges.

The easiest way to call this groups bluff is for the Reps to propose making muni income subject to the 30% rule. Obama's b/s Buffet rule conveniently excluded muni income which is what most of the extremely wealthy own. BTW, higher taxes increase the value of muni bonds, although I doubt that it their objective. They are offering the sacrifice of those accumulating wealth (their competition) so that their wealth will be left alone.

I run into these types in Chicago all of the time. Whenever they talk about raising taxes, I always suggest that we tax wealth. They always reply that that wouldn't be fair. To a man, these guys all made it years ago and have hobby income only at this point.

"Thus, will the "Patriotic Millionaires" who have already made millions over the years be willing to give 30% of their wealth up as taxes to, so to speak, even the playing field?"--Wouldn't paying 30% income tax retroactively for every year that they made $1mil.+ be the correct way to go?